IBS Journal March 2015
Oracle FSS releases depressed quarterly results, but optimistic about the year
Oracle FSS has released its latest financial results Q3 FY2014/15, with net income, operating income and revenues showing a downward turn. The vendor’s net income was the one most hit, with a 23 per cent reduction compared to the same period (three months to 31st December) last year. This time, it stood at INR 2.5 billion ($40.2 million). The operating income stood at INR 3.28 billion ($52.8 million), down four per cent. Consolidated revenues across prod-
ucts, services and BPO services were also down four per cent, and stood at INR 9.38 billion ($150.9 million). Interestingly, of these, the BPO services actually recorded an eleven per cent increase, while servic- es went the other way and dropped by 22 per cent compared to the same period last year. Products held steady, with just a one per cent drop. Operating income by segments made
good reading for BPO services, which went up by seven per cent in the last quarter,
whilst products were just one per cent down. Services, however, were down a notable 52 per cent. In a statement regarding the results,
Makarand Padalkar, CFO of Oracle FSS, said that the net income for the quarter ‘was down expectedly due to lower inter- est income post the payout of interim div- idend by the company last quarter’. The vendor’s MD and CEO, Chet Kamat, pointed out that the vendor signed $17 million of new licence fees in the quarter, and that on a year-to-date basis, Oracle FSS’s licence signings ‘have posted a robust 41 per cent growth’. Meanwhile, the overall results for the last nine months (to 31st December 2014) were on an upward trend, with both operating income and consolidated rev- enues showing improvement. The former reached INR 11.3 billion ($181.6 million), up by twelve per cent compared to the same period the previous year; and the lat- ter went up by four per cent to reach INR
29.55 billion ($475.4 million). However, net income for the nine months shrunk by eight per cent and stood at INR 9.62 billion ($154.8 million). The year 2014 did not bring any top-
tier core banking software deals to the vendor, either for Flexcube or Oracle Bank- ing Platform (OBP). However, a small sub- set of the latter – online loan origination, to be precise – was taken by Keybank in the US. Flexcube had a spate of signings from
start-ups, such as Hampden & Co in the UK, Ancoria Bank in Cyprus, China Commercial Bank in Tanzania, Alpha Capital in Ghana and an unnamed institution in Denmark. The emerging markets of Africa and
Asia yielded the majority of new core bank- ing software deals for the vendor in 2014. Examples here include Mauritius-based Employees Welfare Fund; Tun Foundation Bank in Myanmar; Azizi Bank in Afghan- istan; and Rang-ay Bank and Queen City Development Bank in the Philippines.
Ziraat Bank goes local for IT modernisation
It would seem that Turkish banking group, Ziraat Bank, has given up on the idea of standardising its technology and opera- tions enterprise-wide. Following the halt of the worldwide roll-out of TCS Financial Solutions’ Bancs core system last year, the bank has been turning to local suppliers to address its software needs in specific loca- tions. Asseco, a Central European bank-
ing systems vendor, has gained a contract to implement its BaPo core offering for Ziraat’s operations in Sarajevo, Bosnia and Herzegovina. The system, formerly known as Antegra BI, stems from Serbian vendor Antegra, which was acquired by Asseco in 2008. The scope of the deal is universal banking, according to Asseco. Incidental- ly, Bosnia was supposed to be the first live site for Bancs, paving the way for the major roll-out across Ziraat’s 50+ international locations. Meanwhile, in Germany, the project
8 Ziraat Bank ©brewbooks, Flickr
to modernise Ziraat’s technology went the way of Intertech. The German opera- tion of Ziraat is relatively big: it is a stan- dalone subsidiary (rather than a branch), Ziraat Bank International AG, with HQ in Frankfurt and eight branches across the country. Intertech is a Turkey-based bank- ing software vendor, which is part of Den- izbank, one of the country’s largest pri- vately-owned banks (it now resides in the
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hands of Russian financial services group, Sberbank). The vendor has been on an international expansion drive over the last few years, with some success in Western Europe, largely through its parent’s interna- tional operations. Ziraat Bank Internation- al took Intertech’s core system, Inter-face, plus a range of auxiliary modules, such as data warehouse, MIS, BPM, scoring and decision engine, credit risk management, regulatory reporting (including the Turk- ish regulatory reporting set) and docu- ment management. The new software will replace the legacy Paba/Q solution from German developer
Actis.BSP, which was acquired by Temenos back in 2007. There is an expectation that more sites
are to follow. Among Ziraat’s sites with leg- acy software are the US branch, that runs the Abraxsys solution from COR Financial, and the UK one that is a long-standing user of the Bankware product from Internation- al Financial Systems (i-Financial).
ibs news
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